FOR AGE ORBIT INC NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS Continued Y ears ended January 31 2007 and 2006 11 ADDITIONAL INFORMA TION RELA TING TO THE ST A TEMENT OF C ASH FLOWS Changes in noncash operating working capital items 2007 2006 A ccounts receivable 1757494 1064546 Inventories 3773959 168293 P repaid expenses 3637 A ccounts payable and accrued liabilities 1937818 649837 Income taxes 139696 296182 Client deposits 373574 62355 3363394 349175 Cash and cash equivalents Cash 191938 71909 Bank overdraft 190361 120977 1577 49068 Other information Interest paid 298591 182719 Income taxes paid 3185319 203115 L oss on sale of investment in a company subject to significant influence included in gain on sale of longterm investment 89261 See notes 9 and 13 for other noncash investing and financing activities 12 COMMITMENTS Under the terms of operating leases of business premises expiring 2007 and 2012 the company is committed to make minimum payments totalling 308100 as at January 31 2007 detailed as follows 2008 92100 2009 90000 2010 42000 2011 42000 2012 42000 13 RELA TED P A R TY TR ANSACTIONS The company is related to F orage Eenou Inc due to the significant influence exercised by one of the shareholders of the compa ny During the year the company made the following transactions with its related companies its parent company and companies subje ct to significant influence 2007 2006 Sales 359143 Purchases 814975 585352 R ent and administrative services revenues 34400 34400 The above transactions were made within normal course of operating and have been recorded at the exchange amount which is the amount of consideration established and agreed to by related parties F40